Canada Imposes a Total Ban On Trade in Goods With Iran

OTTAWA—Canada said it would enforce a total trade ban on Iranian goods, going further than any other major Western nation in imposing trade-related penalties amid a broad effort by Washington and its allies to persuade Tehran to give up its nuclear program.

Canadian Foreign Minister
John Baird
said on Wednesday that the trade ban would prohibit the import or export of all Iranian goods.

Since 2010, Canada has joined the U.S., Europe and other powers in imposing increasingly tough economic sanctions on Iran. The European Union has ratcheted up its own economic penalties against Iran, but has stopped short of a total trade ban.

The U.S., through a series of specific and targeted sanctions over many years, maintains what's effectively a trade ban against Iran. But it, too, has stopped short of declaring a blanket ban on all goods coming in or out of Iran.

Mr. Baird, the foreign minister, said the move was necessary due to a failure by Iranian leaders to cooperate with the International Atomic Energy Agency. "Iran has failed to engage meaningfully, while the risk posed by its enrichment activities increases," Mr. Baird said. "We are compelled to take further actions against this reckless and irresponsible regime."

Still, Canada's move affects just a small sliver of trade that still exists between the two countries, and isn't likely to significantly increase economic pressure on Iran.

A representative for Iran's United Nations mission in New York wasn't available to comment.

Late last year, Canada imposed restrictions on certain Iranian imports and exports, including the purchase of all energy-related products. The new measures will now ban the few Iranian goods that still make it into Canada, including dried fruit, saffron and Persian carpets.

Canada imported 39 million Canadian dollars (US$37.5 million) in goods from Iran in 2012, according to the country's statistics agency. Canadian exports to Iran have fallen sharply over the years, to C$95.3 million last year from a presanction, prerecession peak of C$680.8 million in 2008, according to data from export-credit financier Export Development Canada.

The top two exports to Iran in 2012 were wheat and soybeans, which combined represented 70% of all Iran-bound sales.

The Conservative government of Prime Minister
Stephen Harper
has ratcheted up its condemnation of Iran over a wide range of issues, from Tehran's nuclear ambitions to its human-rights record, while bolstering its public support of Israel. Earlier this month, Mr. Harper chided Western leaders at an appearance in New York for softening their support of Israel, though he didn't provide specifics.

Canada's diplomatic relationship with Iran started to significantly deteriorate in 2003, following the death of a Canadian journalist in an Iranian prison. Last year, Canada suspended all diplomatic relations with Iran.

Canada Imposes a Total Ban On Trade in Goods With Iran

OTTAWA—Canada said it would enforce a total trade ban on Iranian goods, going further than any other major Western nation in imposing trade-related penalties amid a broad effort by Washington and its allies to persuade Tehran to give up its nuclear program.